Sale of personal car used for business

Forum|Forum|1 year ago
March 29, 2025
1 reply
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I'm still having trouble with this, and hope *someone* out there can help.

Here's the deal: I bought a 2001 RAV 4 in 2004 for approx $12,000 and used it for the next 20 years (yes 20!) as my personal vehicle, with an average of 23% for business use. (301K miles total, 67,919 business). Each year, I took standard mileage deduction, and no depreciation.

I sold the vehicle in March 2024 for all of $500.

I did the work around described in a previous community question...
(https://ttlc.intuit.com/community/taxes/discussion/sale-of-personal-vehicle-i-used-for-business/00/3137272)
and I'm getting what looks to be a gain on the sale. (That whole "Sale of Other Business Property" section is a mess, BTW. )

But in the review, TT is telling me the calculated depreciation ($15,070) can't be more than the vehicle cost ($12,000 gross, $2,760 if I plug in the 23% of cost as advised in the work around) and it doesn't tell me how to fix it. And of course, the review process bogs down right there.

So please--any help?

Best answer by AmyC

Change the depreciation amount to match the basis of the car. You have a special situation. . The IRS recommends exactly your situation as how to get the best deal on a vehicle. Use it longer than can be depreciated while taking the standard mileage deduction. Great job!

You took standard mileage with the longevity of your car, you got a great deal. Depreciation allowed can't exceed the basis of the car so you had a little extra deduction with no consequences.

AmyCAnswer

Employee

You took standard mileage with the longevity of your car, you got a great deal. Depreciation allowed can't exceed the basis of the car so you had a little extra deduction with no consequences.

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